Private equity and venture capital investments accelerate the green transition

Achieving economic growth and hindering climate change are not mutually exclusive. In fact, promoting sustainable growth works as a competitive edge for companies. Growing and innovative companies are an integral part of the green transition.

Private equity and venture capital investors advance the green transition in multiple ways:

1. Sustainable growth is promoted in the investors’ portfolio companies in many ways, for example by cutting down the carbon footprint of operations. Company competitiveness is measured not only through economic growth rates but also through ESG-specific growth rates.
2. The investors fund novel technology companies that aim to solve the most pressing challenges of our time, such as sustainable food production and replacement of non-renewable energy sources.

A few examples of companies that offer solutions to these challenges:

P2X Solutions

P2X Solutions produces, refines, and distributes green hydrogen. It uses hydrogen to make fuel, which can be a key to emission reduction in areas like the manufacturing industry and traffic. The company has received growth funding from both private and public investors: in the beginning of their growth journey, P2X has received venture capital investments and their industrial production stage has been funded by the Finnish Climate Fund and the Ministry of Economic Affairs and Employment of Finland.

Betolar

Betolar is a forerunner of materials technology that aims to hinder carbon emissions and the use of natural resources in the construction industry. Lately it has been developing a more sustainable alternative for cement. Betolar has also received funding to accelerate growth from both private equity investors and the public sector. At the end of 2021, it was listed in the Helsinki stock exchange on the First North list.

Solar Foods

Solar Foods looks for alternative methods for global food production. Solar Foods has started producing protein from carbon and electricity, which can for example be used as a replacement of animal protein in food production. Solar Foods has also been backed by venture capital investors and the Finnish Climate Fund was among the investors in their expanded production facility.

Carbo Culture

Carbo Culture extracts biochar out of agricultural waste. Biochar binds water, nutrients and pollutants that would otherwise accrue in the environment. In addition, biochar can also be used in cosmetics, the pharmaceutical industry and as a soil improver. Carbo Culture has also been supported by venture capital investors.